EU-Mercosur

Late 1995, the European Union initiated negotiations on a bilateral free trade agreement with Mercosur (common market between Argentina, Brazil, Paraguay and Uruguay) as a reaction to the US’ push for a Free Trade Area of the Americas (FTAA).

The EU-Mercosur FTA — which could be termed an inter-regional agreement, or more accurately a bilateral agreement between two common markets — was slated to be completed in October 2004. But the two sides failed to agree on each other’s final offers. Among other things, Mercosur was not satisfied with the EU’s agricultural market access provisions while the EU complained of the lack of Mercosur proposals to open their telecommunications sector and to upgrade protection of European geographical indications. More generally, commentators blamed the failure of the talks on mutual lack of political will.

Discussions resumed in 2005 and the EU planned to reach an agreement by 2006; however, the resumption of negotiations has been put off indefinitely due to the resistance of South American countries to opening up certain markets and to the European rejection of demands to cut agricultural subsidies.

In 2010, negotiations began anew and in July 2011 the 6th negotiating round took place in Brussels without substantial results.

At its biannual summit last week, South American trade bloc Mercosur confirmed that it intends to finalise an agreement with the EU by the end of the year. But experts warn that this timeframe might be too ambitious for a full-blown deal. EURACTIV Spain reports.

A move by the US Department of Agriculture to ban imports of fresh Brazilian beef has added weight to calls to remove agriculture from a free trade agreement between the EU and countries in the Mercosur trading-bloc.

A two-year investigation found evidence some meat-processing plants in Brazil had been selling rotten beef and poultry on to the export market by bribing health inspectors and politicians to get the necessary paperwork.

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